The Reverse Merger: Backing Into Wall Street's Worst Idea
- Tags:
- Finance,
- Financial Services,
- Investment,
- IPO,
- Merger,
- Mergers & Acquisitions,
- Ross Crossland Weston Mirus
- Source:
- Ross Crossland Weston Mirus
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Overview: One of the options available to small- to medium-sized privately held companies that are looking to raise additional capital or to make acquisitions is the reverse merger. The reverse merger originated as an alternative to the traditional initial public offering (IPO) process for companies that want the benefits of being a public company without the expense and complexities of the traditional IPO. The reverse merger is often suggested as the best option to provide greater access to the capital markets, increase the company’s visibility in the investment community, and offer. This analysis indicates that while the reverse merger is a quicker, easier, and cheaper route to becoming a public company. It costs much more down the road in terms of the newly public company’s ability to raise additional capital, attract an investment following, and utilize its public shares as a cheap currency for acquisitions.
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Format: PDF | Size: 128KB | Date: Jan 2003 | Pages: 9
